Monetarist supporters of the Taylor Rule would argue that combat inflation the
Fed should
Elimination Tool
Select one answer
A
buy securities on the Open Market whenever deficit spending
occurs.
B
sell securities on the open market when corporate profits exceed
10% return on investment.
C
increase nominal interest rates any time inflation is above 1%.
D
decrease dependency on Open Market Operations and use
Required Reserve and the Discount Rate exclusively.
E
have direct control over the sale of T-bills and other government
securities.